July 20, 2017

Sturgeon Refinery boondoggle: Notley NDP doubled-down on costly mistakes

Holly NicholasRebel Commentator

The Sturgeon Refinery, a $6.5 billion project originally approved by the PCs and built through a partnership between North West Upgrading, SNRL and the Alberta government, is a  boondoggle that’s only getting worse since the last time I reported on it

It’s spiralling out of control with the cost of construction alone increasing by $3 billion, leaving Alberta taxpayers on the hook for $26 billion in toll fees over 30 years that will go to North West to upgrade bitumen to diesel, in addition to a 5 per cent profit.

These companies will have their construction costs covered by us and then some, so the most risk for the project is assumed by taxpayers.

And now we hear it won’t open until June of 2018, which is nine months behind schedule meaning nine months of interest payments on borrowed money borne by Alberta taxpayers.

Several upgrader projects were slated before the economic downturn in 2008 that wreaked havoc on the Alberta economy. When Ed Stelmach brought in the royalty review, that didn’t help since a lot of projects were abandoned and never picked back up.

Of the eight projects slated at that time, only one remained because companies like Petro Canada and Statoil quickly realized that when times got tough, capital costs and market differentials would just be too much.

The only one left standing was the Sturgeon Refinery. Injecting taxpayer money into it was the only thing that could give this project a pulse and bring it to life.

The NDP are repeating the same mistakes that should have already been learned, even bringing in yet another royalty review that created uncertainty.

It’s like deja vu but there are real risks involved that will cost our grandchildren’s grandchildren. The Alberta NDP could have put a stop to this project, but they didn’t.

They want more oil refined in Alberta but they won’t tell you about the price tag that comes along with it.

Comments
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commented 2017-07-21 02:44:33 -0400
Commies sure love to make huge expensive messes.
commented 2017-07-20 22:03:37 -0400
Holly loves to say boondoggle.
commented 2017-07-20 19:50:51 -0400
CANADIAN MONGREL commented 2 hours ago
Even if this refinery does go on-line, there are no pipelines to transport the product nor will the regressive Eco-socialists, including Notley, allow the lines to be built. I haven’t read a truer statement here for awhile.

Very good post
commented 2017-07-20 17:59:34 -0400
Even if this refinery does go on-line, there are no pipelines to transport the product nor will the regressive eco-socialists, including Notley, allow the lines to be built.
commented 2017-07-20 15:06:56 -0400
DAMN!! That Nutley woman gets UGLIER every day!! …look at the thing. Like the witch from Hansel & Gretel.
commented 2017-07-20 15:04:37 -0400
Didn’t Ralph Klein make a law that made it illegal for the Alberta Govern. to get into the provinces competitive markets???
commented 2017-07-20 13:21:41 -0400
Citizens are not in the busniss of subsidizing corporations to maintain the profit line… companies must sink or swim on their own merit.
This is all getting very tiresome and I’m sick of having my pockets turned inside out for the Masters to maintain control over us.!!
commented 2017-07-20 13:21:41 -0400
Citizens are not in the busniss of subsidizing corporations to maintain the profit line… companies must sink or swim on their own merit.
This is all getting very tiresome and I’m sick of having my pockets turned inside out for the Masters to maintain control over us.!!
commented 2017-07-20 12:59:57 -0400
At the end of Part 3 of From Here to There I said “It has been my experience that subsidies, special programs like cap and trade, or special taxes distort markets, slow progress and rarely if ever accomplish their stated objective. This is because they distort the market system and businesses start to structure in such a way as to maximize the benefit of the subsidy or program instead producing meaningful developments.” http://heinzegroup.com/climate2016.htm